What is a good Rate of Return on investments (ROI) ?

How one can achieve 15% assured return every year by investing 5 lakhs?

Can you earn at least Rs. 70 - 80 k per month with share trading and investing on a capital of Rs.5 lakh?

How can I invest 3.5 lac for 15 years for getting around 10% return post all broker charges?

Essentially all these questions are variant of one question :What is a good annual return on my investments.

Defining Good Return
What is a good return is something which varies from person to person, for some folks 10 % is a good return for some folks 15 % also seems less, but is their an independent way we can define good returns well let's look at some data , below is 30 year return data from SENSEX , in this time SENSEX returned around

So in little over 30 years sensex grew almost 60 times, thus giving us a CAGR of 14.57% approximately .

So we have one benchmark from the stock market over reasonably long terms of 14.57%

Now lets look at other possible benchmarks, if you put all this money in Fixed deposits your annual rate will be in the range of 7-7.5% so that's a reasonable risk free benchmark, though there is a tax deduction at source so your actual returns will be far lesser than the benchmark interest rates.

Beyond financial instruments there are non-financial instruments or options like investing in real estate which can provide good returns, while we do not have good data on Real estate returns in India.

I hope that this made sense and gives oneself perspective of future returns to expect.

@jatinderchd So, expense ratio is basically the cost which an investor has to bear while investing in mutual funds. I mean is it the fee we have to pay to a mutual fund house? Can someone explain this in layman language. I am new to it, so just trying to get some good feedback on such topics.

@Anmol Small finance banks provide basic and limited banking services. Fincare Small Finance bank is one such Small Finance bank having its corportae office in Benagluru, Karnataka. It has already opened a number of branches across India. The primary aim of setting up of these banks was to provide banking to the rural and unbanked sectors in India.
Fincare Small Finance Bank provides products like savings account, current account, fixed deposits and affordable loans etc. Interest rate is also 6% to 7% on savings account.
Further, long term FDs offer interest rate ranging from 8%-9% or even higher for senior citizens based on duration of FD. Presently, they are offering high interest rates on FDs and savings account. These seem to be quite lucrative and attract a number of customers.
But, still one needs to be very cautious before putting money. Just check all the necessary terms and conditions before investing your money. If anyone had a real experience with any of the small finance banks, do share your feedback.

@harleen That seems to be a useful list for the one looking for Payment banks in India. I feel Airtel Payments Banks and Paytm Payments bank have gained more popularity than others. May be, the rest shall get more traction in the coming days. It all depends on their services and ease of use. They offer limited benefits only.
The big questions here are: How convenient they actually prove to be? How much are they beneficial? This can be answered after a while and based on their performance.

@Harleen Small Finance banks primary objective is to promote financial inclusion in the country. The main objectives include:
Offering Basic banking activities like accepting deposits.
Lending low cost credit to small business units, unorganised sector, farmers and micro and small industries.
However, a Small Finance Bank cannot extend larger amount of loans. In fact, SFBs have to face challenges to compete with public sector banks. Overall, Small Finance banks are a good initiative to further strengthen the credit arena.

I think debt is a bad thing and you have to get rid of it as soon as you can. I think you have to do necessary savings in order to pay your debts by changing your lifestyle for sometimes. Do not spend money where it is not necessary to be spent. I wish you best of the luck!

@Harleen Hi, thanks to clarify how to activate a dormant and inoperative account. On of my accounts got inactive and I was looking for ways to activate it now. Actually, that was a prior salary account of my previous job that I forgot to close and it became inactive since no transactions were done. And, I got a new account opened for salary from new company. Thanks for sharing such useful information!

Hello,
Is it possible to receive a gift from a client in India ? Hi,
I have read your blog on Quora and need your advise on the same. I am from India
I am getting some money from some of my foreigner client in lieu of the work I did for him.
Now the thing is I do not want to credit the entire amount in my bank account.
Out of this money, 70% of this money has to be paid by me to my ex-wife as Alimony, so why I have to pay tax on this amount. So, I am thinking to ask my client to do a transfer to my bank account via NEFT as in the records it will show the received amount was paid in terms of demand draft as alimony. (However, I wanted to know if Bank is going to ask the question what for I am getting money from UK or if IT dept will have an interest knowing this? And if I really has to pay tax on this sum before paying the same amount as alimony to my ex-wife?)
Shall I ask this UK client to send me only the alimony amount as Gift? I mean, do in India, the amount transferred as Gift from non blood and foreigner is considered? If yes, then maximum how much he can transfer me me to my account showing as Gift?
Looking forward to your help in this regards !!

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